Don’t short change young Australians – leave their super alone
11 April 2017
Dipping into superannuation for a house deposit is a short-sighted idea that will slash the retirement savings of young Australians and put pressure on the age pension.
David Atkin, Chief Executive Officer of Cbus, the industry super fund for the Construction and Building Industry said that as a fund with a young demographic and relatively modest average account balances, he is concerned by any moves that will diminish their retirement savings.
“Superannuation works when money is invested over the long term,” Mr Atkin said.
“Our members want the best possible retirement outcomes and we know that taking money out early will fundamentally compromise this.
“This policy won’t make it easier for young people to buy a home instead it will drive up the cost of housing and do nothing to address the issue of increasing supply.”
The average Cbus member is 38 years old and has an average account balance of $46,160.
Mr Atkin said the best way for super to help address housing affordability was in relation to investing and building social and affordable housing.
“One of the biggest problems with housing affordability in Australia is supply - we need to build more houses,” Mr Atkin said.
“Cbus stands ready to invest in this critical infrastructure but the Federal Government needs to get the policy settings right to make those investments sustainable.
“Cbus members build our nation so there is a natural symmetry with their superannuation being invested into their industry to build a better future for Australia.
“We welcome the Government’s interest in pursuing plans to facilitate investment by superannuation funds into the market and we look forward to examining the detail.”